Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment
Abstract
Between 1973 and 1978, the Indonesian government engaged in one of the largest school construction programs on record. Combining differences across regions in the number of schools constructed with differences across cohorts induced by the timing of the program suggests that each primary school constructed per 1,000 children led to an average increase of 0.12 to 0.19 years of education, as well as a 1.5 to 2.7 percent increase in wages. This implies estimates of economic returns to education ranging from 6.8 to 10.6 percent. (JEL I2, J31, O15, O22)
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In Duflo (2001), under a common trends assumption on D_i,g,t(0), the first-stage coefficient identifies a weighted sum of the effect of one new school on years of schooling in every district, with many negative weights.
“For instance, in Duflo (2001), under a common trends assumption on D i,g,t (0) , the number of years of schooling individuals would complete if zero new schools were constructed in their district, the first stage coefficient identifies a weighted sum of the effect of one new school on years of schooling in every district, with many negative weights.”
From Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects (2020) · cites this paper as Duflo (2001)
The result that the 2SLS coefficient identifies a LATE in the special case with two groups and two periods does not generalize to applications with multiple groups and periods or a non-binary instrument.
“However, the discussion above shows that this result does not generalize to applications with multiple groups and periods or a non-binary instrument, as in Duflo (2001) where the number of new schools constructed varies across districts.”
From Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects (2020) · cites this paper as Duflo (2001)
Duflo (2001) studies the life-course impact of childhood exposure to school availability in Indonesia based on district and year of birth, and Bailey, Sun, and Timpe (2021) examine the long run impacts of childhood exposure to Head Start in the United States, with treatment based on county and year of birth.
“This situation can arise in cohort studies: for example Duflo (2001) studies the life-course impact of childhood exposure to school availability in Indonesia based on district and year of birth, and Bailey, Sun, and Timpe (2021) examine the long run impacts of childhood exposure to Head Start in the United States, with treatment based on county and year of birth.”
From An Introductory Guide to Event Study Models (2023) · cites this paper as Duflo (2001)
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- Authors
- Duflo, E.
- Affiliations
- Massachusetts Institute of Technology (US)
- Corresponding author
- Duflo, Esther
- ORCID
- Duflo, Esther
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2001-09-01
- Volume
- 91
- Issue
- 4
- Pages
- 795-813
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W3124366560
- Cited by
- 1,940
- References
- 18
- Citations by year
- 2026: 160 · 2025: 144 · 2024: 116 · 2023: 100 · 2022: 102 · 2021: 109 · 2020: 90 · 2019: 106 · 2018: 81 · 2017: 97 · 2016: 80 · 2015: 79 · 2014: 83 · 2013: 81 · 2012: 74
- FWCI
- 123.21
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- American Economic Review (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Education › School Choice and Performance
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Keywords
- school construction, education policy, economic returns to education, wages, primary education, labor market outcomes, Indonesia, policy experiments
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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